EFFECTS OF OPERATING SUBSIDES AND DEDICATED FUNDING ON TRANSIT COSTS AND PERFORMANCE

This paper reviews the empirical evidence of the impacts of operating subsidies on transport productivity, cost trends and ridership. Results from a recent investigation of the impacts of operating subsidies in California are also presented. It is found that subsidies have had a degrading effect on transit performance over time, in particular resulting in higher unit costs and lower labour productivity.there is also evidence that operating subsidies have even more perverse impacts when they are dedicated specifically for transport purposes. Although subsidies have also served to increase U.S. transit ridership, evidence suggests that this benefit has probably been outweighed by subsidies' disbenefits. A combination of user-side subsidies and provider-side subsidies which are distributed on the basis of performance criteria might offer a better approach to underwriting transit expenses. (TRRL)

  • Availability:
  • Corporate Authors:

    GORDON AND BREACH SCIENCE PUB.

    AMSTERDAM:
    ,    
  • Authors:
    • Cervero, R
  • Publication Date: 1984

Media Info

  • Features: Figures; References;
  • Pagination: p. 37-53
  • Serial:
    • Urban Analysis
    • Volume: 8
    • Publisher: GORDON AND BREACH SCIENCE PUB.
    • ISSN: 0091-1909

Subject/Index Terms

Filing Info

  • Accession Number: 00394445
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD, TRIS
  • Created Date: May 31 1985 12:00AM